Split-Dollar Critical Illness

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A Strategic Approach to Employee Benefits and Business Protection

Split dollar critical illness insurance is a unique financial strategy that combines employee benefits with business protection. By sharing the premium costs and death benefits between an employer and an employee, this innovative approach offers numerous advantages for both parties.

How Split Dollar Critical Illness Insurance Works

Shared Premium Costs: The employer and employee agree to share the premium costs of a critical illness insurance policy.
Death Benefit Allocation: The death benefit is typically divided between the employer and the employee’s beneficiaries.
Tax Implications: The policy’s structure can provide tax advantages for both parties.

Benefits for Employers

Employee Retention: Attract and retain top talent by offering a valuable employee benefit.
Increased Productivity: A healthier workforce can lead to improved productivity and reduced absenteeism.
Tax Advantages: Potentially reduce corporate taxes through strategic policy design.
Business Protection: In the event of a key employee’s critical illness, the business can receive a portion of the death benefit to cover potential financial losses.

Benefits for Employees

Financial Security: Receive a significant cash benefit to cover medical expenses and lost income.
Peace of Mind: Know that your family is financially protected in case of a critical illness.
Tax Advantages: Potentially reduce personal income taxes on the death benefit.

Nova Star Can Help You

Our experienced consultants can assist you in:

Understanding Split Dollar Concepts: Explaining the complexities of split dollar arrangements.
Designing a Customized Plan: Tailoring a solution to meet your specific needs and budget.
Selecting the Right Insurance Provider: Identifying reputable insurers with competitive rates.
Managing the Policy: Ensuring compliance with tax laws and regulatory requirements.

Protect Your Business and Your Employees

Contact Nova Star Insurance Consultants today to explore the benefits of split dollar critical illness insurance.

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